Checklist · Personal Injury & Compensation

Medicare compensation recovery checklist before settling a personal injury claim

Checklist for Medicare compensation recovery when a personal injury claim settles or goes to judgment: the $5,000 threshold, the notice of past benefits (form MO026), the payer's 28-day notice, and no release of money to the client until the Commonwealth is paid.

Kind: Checklist. Steps or checks to work through and tick off.
Where it applies: Australia, Commonwealth
AI use: Yellow AI can help in set ways. A lawyer checks specific points before use.
Law stated as at: 18 October 2026
Status: Maintained. Checked on 18 October 2026 against the authority it cites, for Australia and Commonwealth.
Version: 1
Source: Written for this library

When to use it

Use when advising on or negotiating settlement of any Australian compensation claim likely to exceed $5,000 including costs, so that the client's net outcome allows for the Medicare refund and the settlement deed and payment timing deal with it.

Used for these tasks

Each task page says how far AI may help with the task and what the lawyer must review.

How AI may be used

AI may fill the checklist from the file and reconcile a notice of past benefits against the client's treatment chronology; the lawyer decides which services are injury-related and how the refund is reflected in the settlement advice.

AI may

Compare each item in a notice of past benefits with the treatment chronology and flag services that look unrelated to the injury
Fill the settlement amount, costs, dates and payer details into the checklist
Diarise the 28-day notification date from the date the settlement is last signed

AI must not

Must not decide that a Medicare service is unrelated to the injury; it may only flag candidates for the lawyer
Must not present a net settlement figure to the client that the lawyer has not checked
Must not send client medical information outside the firm's approved environment

The lawyer checks

Whether the amount fixed by judgment or settlement, including costs for a settlement, exceeds $5,000
The notice of past benefits has been requested in time to be used in negotiations, and any disputed items are taken up with Services Australia
The settlement deed and payment arrangements allow for the Commonwealth to be paid before the client is paid, and the client's written advice shows the expected net amount

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Services Australia, Medicare Compensation Recovery Notification Requirements (judgment or settlement over $5,000; notice of past benefits request form MO026 before settlement; payer's notice within 28 days; payment must not be released to the injured person until the Commonwealth is paid)

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